Gold and Silver: Gold in retreat with the start of the week
- Last week, we saw the price of gold jump by $100, from $1832 to $1932, at the close of the US market on Friday.
- During the Asian trading session, the price of silver slightly retreated from $22.70 to $22.50.
Gold chart analysis
Last week, we saw the price of gold jump by $100, from $1832 to $1932, at the close of the US market on Friday. During this morning’s Asian trading session, the price of gold started a retreat with the formation of today’s low at the $1908 level. Gold manages to get support there and makes a slight recovery to the $1914 level. If this consolidation continues, we could see price growth up to $1920. Potential higher targets are the $1925 and $1930 levels.
For a bearish option, we need a negative consolidation and a drop below today’s support at the $1908 level. After that, we would see the formation of a new low and could initiate a further pullback. Potential lower targets are $1900 and $1890 levels.
Silver chart analysis
During the Asian trading session, the price of silver slightly retreated from $22.70 to $22.50. We are now consolidating around that level and waiting for the next move in the silver price. A break below would lead to the formation of a new low and thus strengthen the bearish option, which could have a negative impact on the price. Potential lower targets are $22.20 and $22.00 levels.
Additional support for the price in the zone around $22.00 was provided by the EMA50 moving average. For a bullish option, we need a positive consolidation and a return up to the $22.70 level from the beginning of the day. A break above would be very beneficial, which could initiate a further rise in the price of silver. Potential higher targets are $22.80 and $23.00 levels.
